Turnover Formula

Industry 189 views 2 replies

Total turnover, that is, the aggregate amount for which sales are affected by the company, giving the amount of sales in respect of each class of goods dealt with by the company and indicating the quantities of such sales for each class separately.

Generic Turnover = Sales revenue (Cash, Receivables, Revenue from Proportionate or Completed contracts & Other consideration) + Other Income (enterprise resources yielding interest, royalties and dividends) - Sales Tax, Excise duties & Others - Goods returned - Price adjustments - trade discount - cancellation of bills - Inward supplies - Others. 

Must exclude from Sales Revenue:

  1. Deferred Revenue (Advances & Prepayments).
  2. Commission is revenue and not cash, receivables or other consideration in case of agency relationship.
  3. Bad debts written off & Royalties.
  4. Sales Tax & Excise duty/ Others cannot be included if they are separately credited to their accounts.
Replies (2)

1) Aggregate Turnover is   define  under  section 2(6)  of the CGST  act  2017. ( SGST / UTGST Act 2017 same ) 

2)  No Definition of  Turnover  under  The Income Tax Act  1961 . 

3) Turnover  is define  under  section 2( 91)  of the companies  Act  2013   . 

Txs

1. The taxes inclusion or exclusion solely depends upon whether if they are credited to their respective accounts. Rest all inclusions covered. 

2+3 - definition: Section 2 in the Central Sales Tax Act, 1956 (indiankanoon.org)

 

Value of all (taxable supplies + exempted supplies + Nil Rated supplies + Zero rated supplies + Non GST supplies) – (Taxes & Compensation Cess under GST Act + inwards supplies + supplies under reverse charge)


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